Green light for Dudgeon Offshore Wind Farm

(Oslo, 1 July 2014) Statoil and Statkraft have decided to start building the Dudgeon Offshore Wind Farm off the coast of Norfolk, UK. The project aims for full production in late 2017.

When completed, Dudgeon will provide renewable energy up to 410,000 households in the UK. The Dudgeon development will now move into a new phase, starting with construction of onshore cables and onshore substation. Offshore construction will start in 2016.

The total investment in Dudgeon is estimated to be £1.5 billion (15 billion NOK). The Dudgeon owners are preparing for a partnership structure reflecting this investment level. Statkraft’s 30 per cent share of the investment amounts to £450 million (4.5 billion NOK).

Statkraft’s senior vice president, Offshore Wind, Olav Hetland says: “We are delighted with today’s investment decision, where we are taking a significant step forward in Statkraft’s growth plans in the UK offshore wind industry. The Dudgeon project is a profitable investment, will deliver significant amounts of clean, affordable power to the UK market, and provides an excellent basis for Statkraft to further develop our capabilities within the maturing offshore wind industry”.

Combining Statoil’s offshore competence with Statkraft’s experience with large renewable energy projects will generate value for owners, suppliers and the UK industry as a whole. The Dudgeon investment could provide benefits for the UK’s offshore wind industry. At least 70 local jobs will be created directly in the operational phase and additional jobs during construction and indirectly in the supply chain.

UK Energy Minister Michael Fallon said: “Today’s decision underlines the success of our new contracts and will bring about a steady stream of investment in renewable electricity. As the best place in the world to invest in offshore wind, the UK is attracting millions of pounds of investment, supporting hundreds of local green jobs and strengthening its energy supply with home-grown sources. We have already attracted £34 billion of private sector investment in renewable electricity since 2010, with the potential to create almost 37,000 jobs in the UK.”

Statoil is the operator for the Dudgeon Offshore Wind Project and will lead the project towards production, followed by operations and first electricity to grid during first half of 2017.

About the project:

Dudgeon Offshore Wind Farm will be constructed with 67 wind turbines, each with a capacity of 6 MW, totalling 402 MW installed generation capacity. The annual energy production is estimated to be 1.7 TWh. This is enough energy to power up to 410,000 UK homes. The North Sea project site is located 32 km offshore, north of the town of Cromer in North Norfolk, and 20 km north-east of the Sheringham Shoal Offshore Wind Farm.

Dudgeon Offshore Wind Farm is owned by the two Norwegian companies Statoil and Statkraft, with Statoil as the operator of both the construction and operations phases.

The license for the Dudgeon site was awarded by the UK government during the Round 2 allocation in 2003.

About the owners:

Statoil is an integrated technology based international energy company, primarily focused on upstream oil and gas business. Statoil is headquartered in Norway, with 21,000 employees and operations in 36 countries. It has more than 30 years’ experience from its work on the continental shelf, pioneering complex offshore projects under the toughest conditions. Statoil is listed on the NYSE and the Oslo Stock Exchange.

Statkraft is Europe’s leader in renewable energy. The group develops and generates hydropower, wind power, gas power and district heating, and is a major player on the European energy exchanges. Statkraft has 3 700 employees in more than 20 countries.

Statkraft has been active in the UK since 2003. The company develops, owns and operates renewable power production facilities and is also involved in the trading and origination of power from its own projects and those of third parties. Statkraft operates hydropower plants and onshore and offshore wind farms across the UK.

Dudgeon key facts:

Located 32 km off the coast of North Norfolk

Water depth: 18-25 m

402 MW capacity, annual production of 1,7 TWh which is enough to power some 410,000 UK homes

67 turbines, 6 MW turbines – Siemens

Wind turbines are placed on monopile foundations fixed to the seabed and one 1000 tons offshore substation